6. The Inflationary Boom of the 1920s (continued) – Murray N Rothbard

20th Century American Economic History

6. The Inflationary Boom of the 1920s (continued)

Lecture by Murray N. Rothbard

Republican policy has always been high tariffs, keeping foreign goods out. But, then the US would lend those countries money to be able to pay for our higher-priced exports. This peculiar foreign-lending scheme included farm goods. Until 1928 there was an enormous foreign lending boom. The stock market collapsed in October 1929.

The Federal Reserve Act of 1913 was for inflationary purposes. The banks endorsed acceptance markets for awhile. Morgan men continued to push price stabilization, yet prices in free markets actually fall, benefiting consumers. In 1929 when prices were falling, corporate bigshots wanted prices pushed back up. The entire banking system was toppling by 1933. It should have been allowed to topple, says Rothbard. The European currencies waged war against each other when everybody was off the gold standard.

The League of Nations was to get the US off the gold standard. Morgan men viewed deflation (natural in free markets) with horror. Strangely enough most of the nation’s economists were in favor of the gold standard at this time.

6 of 8 from Murray Rothbard’s 20th Century American Economic History lecture series.

TRANSCRIPT
00:00
so one of the things that happens with
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the little lower first of all you’re
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pumping more lamez this is a lot of
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money around money to lend out the banks
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of normal around secondly secondly if
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your lower interest rate in the United
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States you’re making fun learning more
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attractive so if the interest rate was
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only three percent ization your ten
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percent of Bulgaria you might be
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simulated on lending money lymerian so
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one of the things that happens then is a
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simulation of a massive private for
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lending program my American banks
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American citizens abroad thanks for all
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of us export underwriters and measures
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and underwriters Commission commissions
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on loans etc then you have the far
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learning system works something like
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that seems like a private version of a
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governmental foreign aid after World War
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two they weren’t to make US government
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loan through or from you 19 20 but a lot
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of 50 songs other faces a lot of those
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of Germany it’s appalling for example
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for every German city & township of
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those businesses for the whole thing
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going for exam statue the ruling
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suspension work so by law amount of
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malinvestment proposed this whole time a
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curious thing here is that the United
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States one wants to simulate our
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American exports other two ways much of
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which the architect forestry can be
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successful subsea one is have low
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tariffs so that we can sell scenery
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automobiles and whatever abroad and then
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they can and we can they can so we’re on
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food or whatever to us is what clock or
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ever thought if we have low power system
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we can persist amidst this interchange
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and noreen selected and paper our
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exports but we didn’t want that we want
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on a high tariff Republican policies
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always been high tariffs because we also
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want to protect the American domestic
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industry for more efficient there are
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more efficient competitors abroad how
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can we do it cuddly stimulate American
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exports and school protect you know
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America domestic industries like keeping
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out America importance of the old
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workers are worth value for sore backs
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with back memories we haven’t learned
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anything essential citizens through
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sixteen fifty or so
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probably going to do this but one way of
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doing obviously it can’t last forever
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but one way of doing it the one from the
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money it keeps it keep where you’ll be
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any goes out and then lens the Europeans
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the money to buy our products why our
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exports it sounds kind of crazy to the
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point look at who’s benefiting from our
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American domestic industry to benefiting
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detecting for food power protection a
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next mornin street is benefiting in fact
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with all the money is really back going
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to the American investor actually for
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the Englishers Bulgaria whatever
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important factor in our export when I of
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course we change that we have the
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American taxpayer fueling the whole
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sizes it’s more permanently process so
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there’s obviously kind of shaky is rest
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Kitaen when you’re dressed like a
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tingling to keep lending money you know
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keep one step ahead a resolution because
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I’m somewhere somehow it because as
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foreign companies going to have to learn
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dollar some some way to know to papal in
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exports is impossible thing as we going
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going on forever the loans are all
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supposedly based on lee taemin how they
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feel pain repay the loans they can’t
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earn it are earning dollars by exporting
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product the United States okay so we
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have this other peculiar so something we
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have high us powerful we have foreign or
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loans supposed to allow the European
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foods and minor exports the farmers of
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course one of stimulation is former
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director for sexual industry they’re
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very happy with this whole thing is
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Benjamin storm was trying to rationalize
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this policy to the mass of it is that we
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have now been so we have to keep our
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prompt I support there is a very rare
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huh a ja and this is sort of a public
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space of the site farmers one of the
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meiosis performers of doing peculiar
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saying we’re going to much in the form
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the foreign programming embers kind of
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dictated the farmer look back of the
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parody playing an average is making no I
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think they’re making 14 in the farmers
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because of the impending really here as
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far as performers of the highest
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proportion called price per other piping
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between Austrian country this is a
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golden age okay everything since then is
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trying to get back to the world but the
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wrench ourselves back into
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11-14 kind of shut up okay the first
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grade bloomin farm landing begins Wesley
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with the Federal Reserve inflation late
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21 early 22 and then it’s similar as a
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false back again there is simulated 14
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more months 24 inflation my mention
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[Music]
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there’s also this was foreign money by
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the way was helped along by dealt with
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coral sources a deluge your US
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government government and banking
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propaganda Norma kind of propaganda
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being the public about close economic
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necessity to lean on the United States
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of foreign lending it’s a peculiar
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things I lack having that again time to
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go into this would be the there arises
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in late 19th century among the
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theoreticians more a lot of law an
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apocalyptic theoreticians around Teddy
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Roosevelt Brooks Adams and henry adams
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and caffeine men and some work so the
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leninism in reverse here’s i hear the
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guys that come included capitalism is
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funk unless you have foreign markets so
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much English again because there’s a
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number surplus piling up we can’t buy
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the surf clubs we have to because open
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up the other countries will by any means
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necessary use a current radiology and
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force them to take our products
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otherwise capitalism this is an
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interpretation from the other side the
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only difference is leaves I say
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therefore we have to smash everybody
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importance of plants you put export go
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ahead and they keep saying this all the
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time a lot of the solute leave some of
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these people believe it and we have them
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laying to Scooby’s look at this age
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situations think this reflects the
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reality known as they think that the
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letter and dash books Adams analysis is
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correct and therefore and therefore
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capitalism has in order to sustain
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itself has to keep us being p realistic
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and forth daily volume on policy
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spectrum so so this I think is really
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closing analysis situation obviously
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some exporters would like to have all of
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the fourth the government have for other
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people to buy their product was a very
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different thing I’m saying the
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capitalism the health of capitalist
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system requires because they’re always
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been a force system looks looking for
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special privileges lose against their
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competitors against we use
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very different coming on ebay motors ok
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this was I’m sure he wants a fight that
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high four pick the farm learning boom up
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and carries on a mat and a mighty for
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learning them in the United States to
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foreign country people 1828 the meantime
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wireless is going on Herbert Hoover the
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Palmer commerce is trying to stimulate
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export north of the other way to trying
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to get export cartels simulating foreign
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loans and so forth and i thinkúit so
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enthusiastic bar far London he says that
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even bad loans are really good you know
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even for one will be defaulted
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eventually because we help export you
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know and yet yeah while this is going on
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4th nomas griping private like you hear
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me publicly the British are falling all
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over benjamin storm and saying you the
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greatest car industry the world’s and
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we’re so on private Norman’s calculating
07:33
great thing about phones are doing
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enough wisin he is fighting more wiser
07:36
than we would be on wasteful so for
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example by 1919 even if I t19 battle
07:45
black at Livingstone what can I sites
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prices rise a little more here we are a
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fantastic boom maybe 19 20 I food
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skyrocketing and black I was complaining
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will keep prices people keep it going up
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and normal is constantly is a company
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pressing too long almost almost
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continually mcculloch fight finally I
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think 94 fourth moment a very happy as
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long as has a big push fishery push any
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lights of strong he says you must
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continue with easy money and foreign
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loans so you’re great really but finally
08:18
still drive but you know I think we’re
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gonna play me enough which it will need
08:21
anymore okay but then i see is like it’s
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like a server are giving a parish really
08:27
giving like an injection to a horse’s
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dose of worth of what’s runs a lot in a
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for a while collapses we have a son play
08:33
sharing injection and everything is
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everything is sliding unless it’s right
08:38
there now but then what happens is in a
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couple of years when I think 26 27
08:41
crisis America prices are falling again
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and the price are going up and
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businesses
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trouble again written for continuing
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continuing this place very cheap money
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policy by this time brent is going back
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to the gold standard or even worse over
08:54
they were in the early 20s having
08:56
unemployment the next one is reason for
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swimming fish moon base goal is
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following in the united states and
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businesses on keeping em just right whoa
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they don’t take the classical ranking
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centering method of raising interest
09:09
rates in tourism we’re going to keep
09:11
gold from going out those they have to
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keep this equation policy that’s been
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given what can what can i do it man i’ll
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have to keep pressure they have to
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pressure us another big dose we built a
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horse once more subtle big notes of
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American inflation notice how short run
09:24
this whole thing isn’t nobody really
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know I think I may have mentioned some
09:27
former bears repeating in a textbook
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they always say private private people
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are narrow-minded all looking for the
09:35
next couple of years or whatever at the
09:36
government is farsighted government sees
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clearly hundred plans four hundred years
09:40
and future implies a whole human race
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actually nobody a shorter range in the
09:45
government remember that babying
09:46
everything was like the election of a
09:47
full get past those crises get away and
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we go there in office I know they’re
09:52
really care what happens in five or ten
09:53
years or use of Zambia to this thing
09:55
nobody looks ahead says well I have you
09:57
can keep going this has been definitely
09:58
just maybe one another six months or
10:00
three months okay we’ll be out of work
10:02
with minimal william little might
10:05
explode the Martians might come back a
10:08
time retribution you know catches up
10:11
with us and and Britain is ken’s
10:15
Benjamin always buying sterling he puts
10:17
the pound rate up once again the time
10:23
has come for another big dose of
10:24
inflation you know the vengers vengeance
10:27
strong tells Charles reach to the
10:29
Frenchy brilliant French on phone is
10:31
very much a closing closing for was
10:33
going on Bobby bro who represent of the
10:35
Bank of France in the situation they
10:37
have a four-man conference for big for
10:40
several bank harvesting York ago secret
10:42
for filling in this isn’t all about it
10:43
july 9027 assisting in norman strong
10:46
Lisa and her llamar shockers we have any
10:49
German likes box and the idea of the
10:52
normal is wrong i agree we’re going to
10:54
have a report and every time duced the
10:56
other survivable one of the big
10:57
inflationary push
11:00
complaining alien cows Lisa and I’m
11:03
going to give a little cooler whiskey
11:04
here the fuck market okay come the
11:07
whiskey I free then I sprayed there so
11:11
ya shoppin chocolate sauce or honey type
11:15
Johnson Lisa Lisa’s great sort of sunny
11:18
Austrians on he’s really something like
11:20
Burleson Anders Holm analysis they took
11:23
horrifying shopping are finally go home
11:24
run quickly an organized during carry
11:29
this forward they’re disappointed at
11:31
shock and meet the horn site together
11:33
because the Knights of every I can
11:34
explain once you solve a lot of problems
11:36
with losing gold other countries but
11:38
anyway so it’s too bad it’s only they
11:41
held it I know the time I really don’t
11:42
know if it has any significance or not
11:43
liked offer that there’s a future
11:45
historians look into it have the secret
11:48
conferences however little iowa state of
11:50
all the lil the mrs. and mrs. Pratt
11:53
philip Randolph an oil pipeline other
11:55
has a significant early to tell and if
11:57
they have to build a limit of now any
12:00
race so the limit of enormous strong are
12:06
we are going to looks like a fine keep
12:10
buying gold and I haven’t won another
12:12
mighty those of inflation means thanks
12:14
we’re going to expand credit once again
12:16
raised prices again lower on American
12:18
interest rates so strong does is we have
12:21
another massive purchase by federal
12:23
government security in the open market
12:26
this is the biggest thing I Malaysia a
12:29
dose of 1921 making 27th of the British
12:33
presses the lighter they were final
12:35
aspect thing the banker the rocks along
12:39
the magazine the banker are had already
12:40
said after 1924 but they already had
12:44
written a regiment strong with a bad
12:47
word about Benjamin strong quote know
12:49
that our friend of England has existed
12:50
and praised called the energy and
12:53
skillfulness that he’s given to the
12:54
service of any such thing supposing a
12:58
psycho coma coma double wall and also
13:03
went on to say that’s the english
13:05
magazine a banker at seans name should
13:07
be associated without a mr. page is a
13:09
friend of england at her greatest link
13:11
orga Heinz page across the American
13:13
ambassador name who make an exception
13:16
for the angle maniacal possession
13:18
because intensity been getting up in the
13:20
war leading American Banker admitted the
13:23
ben anderson eight 1926 the chief of the
13:27
chief of this sheet money politics which
13:29
strong as he was putting in respect we
13:32
have very bad in America can customize
13:34
linearize safe buddy says quote that
13:36
can’t be helped it is a price we must
13:37
pay for helping Europe he quote one of
13:42
the problems are the spanker decided we
13:45
would have to pay the price for the rest
13:46
of us were consulted about the
13:48
unemployed in summerlin is either the
13:50
start of depression we’re not going to
13:52
sell it on the students decision means
13:55
of the world weeds there was the key
13:57
things such as blossom think it’s likely
14:02
the famous candy and pray we the public
14:04
that doesn’t mean anything we owe it to
14:06
ourselves there’s a big questionnaire
14:08
who’s the we ourselves when I was
14:10
different types of people okay so this
14:16
is mikey 27 push for the largest single
14:18
rate of increase in that reserves and
14:20
twenties and Herbert Hoover was critical
14:25
through the Mikey 24 arm was always
14:27
playing a very critical with stock
14:28
market be as linking available
14:31
Rockefeller centers was a purple
14:34
inflationary aspect of the whole site it
14:36
ain’t me he coral Benjamin strong quota
14:39
methyl an expat Europe quote the
14:45
Coolidge and melon Lorraine much as
14:46
favors Coolidge’s know his unreleased
14:48
knees his way through the White House
14:49
which he had anyone so hot he wake up
14:51
any endorse was strong policies doesn’t
14:54
he wake up and he corporal increases in
14:56
a stock market so the great arc are
14:58
thinking sometime 1928 in Atlantic
15:00
Monthly by Ralph Roby a student of
15:02
measurement back Carter was like
15:04
students H Parker Willis so I guess he’s
15:06
feeling worthless himself the rotary arc
15:09
elastic like monthly entitle a copy of
15:10
doors of wall street and the referring
15:13
to cool engine no one there’s every kind
15:14
of stock market was flying a little bit
15:16
cause you know the Russian with present
15:18
make statements like other Scott Mars
15:19
getting too low again we after
15:21
should be higher and the American late
15:23
shape and occupying stocking fillers but
15:25
I will buy park at this level and all
15:27
sorts of statements desire to try to put
15:29
lot more every time show signs of
15:30
relaxing a little bit the there’s a
15:42
private memorandum what about and 1928 I
15:45
assisting the range is strong written to
15:47
an English banker very problem anger sir
15:49
Sir Alexander shoulder and he’s trying
15:54
to explain why strong couldn’t have an
15:55
open formal conference here on Wall
15:57
several banks and have it openly in
15:59
Washington in New York and the publicity
16:01
event and have a thermal button was kind
16:03
of rangement why it why you need a
16:05
sleepless lady so because strong hand
16:08
second quote consider the viewpoint of
16:09
the American public and they have or
16:16
keep a secret and because the American
16:20
public has a prejudicing at the league
16:21
of nations against offensive hearing
16:22
other people’s affairs mer interfering
16:24
or affair the grey embryo peppering
16:27
whole thing and they says to illustrate
16:33
how is slain public or political opinion
16:35
might easily become when the result of
16:36
past decisions become evident he cites
16:41
the outcry against certain specific
16:43
excess of the stock market this is here
16:45
to help people with caught bellyaching
16:47
the Foxes big stock scene and that’s why
16:50
we have to keep your fake secret I like
16:51
that phrase our flame public opinion
16:55
might easily become when the result of
16:57
past decisions become evident that’s a
16:59
very striking phrase I mean when
17:01
somebody makes a secret fish again the
17:04
Vietnam was helping in five years
17:05
results become evidence and probably my
17:07
promise playing with that that’s why we
17:08
have to keep the decision secret so long
17:14
said that very close the very few people
17:17
in these realize that we were now paying
17:19
the penalty for the decision which was
17:20
reached early nineteen twenty four such
17:22
as I can play a decision reach early
17:24
nineteen twenty-four to help the rest of
17:26
the world back to a sound financial and
17:27
monetary base my crew the lead wire in
17:30
realize only problem either by the
17:32
original
17:33
in or about what’s going to happen when
17:34
a rich tradition goes into effect in
17:37
short if the American people were
17:40
allowed to know what has been transacted
17:42
in their name and the ensuing penalties
17:44
they were forced to pay because of these
17:45
efficient things rise up in Iraq then we
17:48
form saying okay after the 1927 CUDA
17:53
whiskey New York Fed a 1927 threw 93 94
17:57
very heavily in foreign commercial bill
17:59
to try to Semin a gold cloak a mirror
18:02
and to give Europeans again more money
18:05
to buy our exports we bought sterling
18:07
bilberry how the idea was have to keep
18:09
on growing north of suffering you go
18:11
flowing back to Britain and top of
18:13
settling up consuming is very weak shake
18:16
here obviously result as a pound is very
18:17
heavily overvalued and the friendship
18:20
piling up sterling balances the first
18:21
circadian rhythm don’t try to a demon go
18:23
we’re going to Rick reckless with
18:24
something social again this inflation I
18:29
think as a temporary success of 27 28
18:31
goals close our again farm prices go up
18:34
a pound strikes a little bit exports
18:36
rise for so forth British exports run
18:38
report as far along to simulate a new
18:41
heights reaching released early mid
18:43
nineteen twenty eight but by midnight
18:47
1928 the CUDA whiskey whiskey right you
18:50
know disappears in the system of the
18:51
British forward so to see the town
18:54
starts lagging again and exports for
18:56
farm prices for foreign loans with
18:58
something and for one reason why far
19:04
along to talk it’s kind of ironic as a
19:06
spot market but yet they really play
19:07
over in the stratosphere everybody says
19:09
why why should we lend money or farm
19:10
universal a spot markets are really
19:12
getting we’re tripling our money every
19:14
week away over it so far loans again
19:16
drawing up
19:25
and President Coolidge continues with
19:29
capital roll the very last day that he
19:31
leaves office in March 1929 who says the
19:35
US prosperity absolutely found and
19:37
stocks are quote cheap at current prices
19:40
on clothes julia is Alicia limiter
19:44
proportions up there and one other thing
19:50
well one of the thing is which i’m sure
19:52
far as to be interested in particular
19:53
one of the leading blue market
19:55
speculators in this period in the late
19:56
1920s was William C Durant was one of
19:59
the early General Motors people who even
20:02
kicked out by applying my phone and
20:05
Department we organized Joan murders i’m
20:08
outside his mission the crash I mean
20:10
foundation of stock market and he was
20:12
console a cooling on he was quickly
20:13
praising coolidge in no effort for cheap
20:15
money of her for their statements in
20:17
boosting of stock more he he collapsed
20:19
her in the crash social Darwinism came
20:21
that we need to beat her in the stock
20:26
market crash finally the things I’m way
20:31
this thing really stops is but
20:33
Benjamin’s bit as Harry I’m abarnes
20:37
wrote in a letter about somebody else
20:40
finally God smashed regimen strong and
20:44
he died in late nineteen twenty eight
20:47
and then sort of ended really but they
20:49
get slicer and push his assistants got
20:52
try continue on the same thing they
20:54
didn’t have a charisma strong and really
20:56
under control of parallelism shift back
20:58
to Washington and they stumble around
21:01
and bring bring bring so confused
21:04
fashion advice by early 1929 and no
21:07
longer increase in money supply right if
21:09
I get to lose levels which means this
21:11
process is big money inflation stops and
21:14
when a patient’s stop the recession’s
21:16
against the Austrian theory we would
21:18
reunite theory predicts so the crash
21:21
really pletely industrial economy turns
21:25
down around mid nineteen twenty on june
21:26
july not show production began a full
21:28
stock market but has the collapse in
21:31
october there were three basic means y
21:35
which was
21:35
Reserve System inflated in the 20th all
21:38
of them fairly new really brand new to
21:41
the 20 great new breakthrough monetary
21:44
policy the one with the open market
21:47
purchases was already mentioned two is a
21:49
we discount rate we just can’t read it
21:50
as important as open market purchase but
21:52
I have a certain role level Walter
21:56
badges in the 19th century in Britain
21:59
had to find the key role of a central
22:02
bank only be a lender of last resort to
22:05
bail out any bankers that has over
22:07
expanded and the danger of collapse well
22:10
the ideas are the classical 19th century
22:12
bail around under lashes or theory was
22:14
the federal of the central bank should
22:16
keep it it’s rediscount rate in other
22:19
words the rate at which would lend money
22:20
to the banks at a so-called penalty
22:23
level other was higher than the market
22:24
so if the bank and yet so that can lend
22:27
money out of eight percent website if it
22:30
gets into trouble with simple bank rate
22:31
should be higher than a potential us 8
22:33
10 per side which is a pennant which
22:34
penalizes the banks and induces them to
22:36
get out of it is a sound position and
22:38
get out of debt as quickly as possible
22:40
so the classical theory of several bank
22:43
we discounting or penalty rate in the
22:45
early 1920s stronger and the Federal
22:47
Reserve change his whole policy keepers
22:49
looking turtles or rate below the market
22:51
below everything else so having a temper
22:53
so narrow down a six or five for
22:55
whatever the thing it this is for
22:57
stimulates bank lending this increases
22:59
bank reserves and Perry determine on
23:01
compromise so forth does extremely
23:06
inflation airy kind of thing fortunately
23:08
the bank use you don’t like to be in
23:09
debt to the federal loser or others just
23:12
like us to limit the use of mrs. it’s so
23:15
important of the less laggy again is to
23:20
make credit called more elastic and cool
23:28
yeah I here in actually this I have a
23:30
statement reminiscing by Secretary of
23:33
Treasury William gives McAdoo about the
23:34
purpose of the establishments on reserve
23:36
system he said quote the primary purpose
23:38
of Federal Reserve Act which were older
23:40
and strengthen our banking system that
23:42
the enlarged credit resources demanded
23:44
by the needs of business and agriculture
23:46
will come almost automatically to
23:48
existence
23:48
and a rates of interest low enough to
23:50
simulate protect and prosper one kind of
23:52
legitimate business they’re really
23:54
saying for inflationary perfectly fits
23:56
you credit okay so another thing is to
23:58
keep it you just can’t rate below the
24:00
market but up above it and the third
24:03
thing is a very peculiar thing that
24:04
you’re already alluded to the except
24:05
those capers the grand except those
24:07
capers really almost bizarre I don’t
24:13
want to go into a great detail he’s the
24:15
point is that American credit the
24:18
American business system had always been
24:20
a simple single lane responsible single
24:23
lane credit i right i lend money from
24:26
mr. frumble beach will be i write an eye
24:28
on you go beach keep certainty hold upon
24:30
redemption three months whatever and
24:32
europe on the other hand is so-called
24:34
acceptance system ism become the
24:36
development system where you have
24:37
accepted dealers except those banks
24:40
which indoors the paper and then and
24:43
then call upon us the only the better
24:45
for redemption so ten alizarin after
24:49
world war one in boxes of the Curia
24:51
policy trying to create in the United
24:52
later a whole new acceptance market and
24:56
obviously is this connected with foreign
24:57
trade in fact this will ease the you
24:59
know the idea truck buying and selling
25:01
abroad and especially lending money
25:04
abroad because acceptance is only using
25:08
Europe but the way they did it weigh the
25:11
photos are buildings that they split
25:13
they announced they stood ready to buy
25:16
oil acceptances will all be offered to
25:17
it wherever regardless regardless
25:22
providers pom all 70 / 2 and at a very
25:27
cheap rate over the heavily subsidized
25:29
rate so every time the night and I can
25:32
claim eight for example the your color
25:36
size you get to be a little scared and
25:38
try to restrict credit price to hold
25:40
back on buying open market purchases and
25:42
the market turns to acceptances makes
25:44
power-generating acceptances they force
25:46
Leela fed to buy them at a cheap rate
25:47
this gives reserves more is there for
25:49
the banks force because the Fed has
25:51
announced is one of the great given that
25:53
we will buy all acceptance was offered
25:55
to was another cheap late but there’s
25:59
another interesting thing about this
26:00
acceptance policy
26:02
in federal reserve said they would only
26:04
buy acceptances from acceptance from
26:10
acceptance banks and not from not
26:12
directly from the bank it would only buy
26:14
us an acceptance feel like cooking
26:15
thousands and they were only five to
26:17
seven thousand are very large they’re
26:19
worth more than a million dollars
26:20
Appalachian this restricts the whole
26:22
thing to a few pet pet acceptance houses
26:25
and the first gives a lot of new laws
26:28
will easily have exceptions for these
26:30
few special acceptance am now I try to
26:34
indicate the most historians dealing
26:37
with this cause they can’t understand
26:38
why does the Fed just crazy to try their
26:40
own hands in there and while I trying to
26:42
generate a whole acceptance Martinez
26:43
doesn’t exist in subsidizing Morgan’s
26:45
performs home and really only a certain
26:47
dose of conspiracy analysis Kim and
26:50
explain this whole thing as anything
26:52
other than pure irrationality on set
26:56
because I mentioned poor Warburg one of
26:58
eight founders of those are some of the
26:59
guys who wrote the Jekyll Island plan
27:01
one of the head of the Federal Advisory
27:04
Council of reserve system remember
27:06
Federal Reserve Board there’s also one
27:08
of the world’s top acceptance bankers
27:10
camera the board international
27:12
cooperation a couple of others became
27:15
president the other trade association
27:16
acceptance dealers any voices before as
27:18
president presidential address police up
27:21
to see was that he was the one who
27:22
induced measurements for the apheresis
27:25
policy of of subsidizing or allowed
27:27
permanent subsidy from acceptance price
27:30
support so to speak are formed by sports
27:33
the acceptance mark and after 9029 old
27:36
cousin playing disappears they don’t try
27:39
to do this anymore but the damage was
27:41
done
27:45
[Music]
27:51
she about the state fair Irving anyhow I
28:00
wasn’t going on go ahead a stare at
28:02
issue edition of a Morgan is practical
28:04
guide he has theoretical our marine
28:07
fisher and the idea they will suffer
28:11
illegal money knew that they were many
28:13
association which is very far fisherman
28:15
pushing to approximately 19 like
28:18
painters something like that 1911 get
28:23
the idea was it pressure is that if you
28:27
say what the money is simply as a
28:28
business cycle simply advances a dollar
28:30
all ye who prefer government of
28:32
stabilized at spice level talk money in
28:33
when the prices are falling take money
28:35
out on prices are rising every single
28:38
quite logical and there were problems
28:40
the cycle problems this is called stable
28:44
money in the guys were against inflation
28:46
will call the sound money people found
28:48
risk of sleep the year the Austrian
28:52
Austrian view north of the world of
28:54
anderson’s view was as seductive as the
28:57
matter really just a little maxy as the
28:59
bad situations recurring the legal
29:02
deepest because it’s pretty low on the
29:03
free market let me permission before
29:05
some productivity increases quite
29:07
closely falling price levels will be
29:09
going down and if you inject these are
29:12
literally in site bank credit even see
29:14
if its top prizes knowing that even if I
29:16
publix table which is what thank you may
29:18
not be trying to wholesale price level
29:20
of stable but still know what’s going on
29:23
here this whole process is almost
29:25
fighting in Last Theorem of capital the
29:27
ministries in front of the computer
29:28
consumer goods region folk I still
29:30
occurring even though prices don’t go up
29:33
prices are higher than they would have
29:34
been without the sensation or in credit
29:36
expansion so we’ll also Anderson visas
29:39
in Austria and and one open Anderson has
29:41
place and robbery anyone was constantly
29:43
saying I don’t have it oppression gonna
29:44
watch out things as soon as this thing
29:46
is going to collapse and Fisher kept
29:48
saying no no once their prizes are
29:50
constant there’s no problem once
29:51
instantly one thing about the price
29:53
table relation will push comes to shove
29:54
it always a favorite part of stabilizing
29:56
that we usually only a favor of
29:58
stabilizing in the manger prices falling
30:00
when prices are rising young here
30:02
from around our out of town I guess they
30:06
lose our Suzie has ever played with
30:07
money from really spice a relation is
30:09
another subtle form price increase
30:18
Fisher and sigh begin he is capital
30:25
market rover defender the things is a
30:27
spot market something happening in
30:28
stocks of socks on land the subway I
30:30
mean normal place every Fisher was
30:33
heavily invested in the stock market and
30:35
stop eating his wife Carolyn van right
30:38
sisters Carolyn hazards minions and have
30:42
plunged in a big way here in stock
30:44
market he kept urging more credit
30:47
expansion of higher stock prices doing
30:48
the booming during the rules of 20 he
30:50
kept saying there is no problem my phone
30:52
was constant purple money in the stock
30:54
market during a recession 41 in here
30:56
anyone being 18 is calling 24 reflation
30:59
instead of saying okay the site if I
31:02
stimulation people it could have said if
31:03
I can spell sharply and coming around 33
31:06
because that lets they rise of the
31:07
current level what should the government
31:09
should prevent prices is falling any
31:11
further it is insane that it became what
31:13
a cool man reflation it it calls for
31:16
pushing the price level back up and I
31:17
need 20 years and then stabilizing it
31:19
this way I’ll all this doesn’t make any
31:21
sense really human even though there’s a
31:23
fisherman on your category of
31:24
stabilizing price level because you’re a
31:26
favorite if they were Python we you’re
31:28
really saying don’t really care whether
31:29
pike level is just stabilize the roses
31:31
and they say that during the twenties or
31:34
the five level West people but Bo
31:36
suddenly get to 1929-30 free period if
31:39
ice is a for a lot they’re calling for
31:41
pushing 100 stabilized now / surprises
31:43
up back you’re playing island state mark
31:44
it shows they’re really biking by
31:47
completionist while the Rosalynn staples
31:50
under the mask of stimulation okay so
31:53
okay so what you easy when you can
32:01
imagine a number of big shots are in the
32:03
stable money movement now it’s true many
32:05
of them could have just signed their
32:06
name you know Fisher might have been a
32:07
pest I really don’t know and you guys
32:09
are getting our Lyles finest it sounds
32:12
theoretical enough that’s awfully
32:13
dangerous I
32:14
will concede that but so I think there’s
32:18
something involved in fact of so many
32:19
corporate liberal big shots were
32:21
involved in the price stabilization
32:22
movement who is all these people well
32:26
for example is am Caine who’s sharing it
32:28
for me one for the losses in the very
32:30
beginning and full time it was our good
32:33
friend only one good friend John are
32:34
coming he’s running very big in the
32:36
stable flight level movement it was
32:40
president william howard taft was
32:42
extremely enthusiastic that also
32:43
secretary war Henry L Stimson Oh
32:45
brilliant Madhuri clearest and governor
32:49
Woodrow Wilson everybody was governor
32:51
later president believed I’d sign up at
32:53
far the staple money league they want an
32:55
association if you get ready cool with
32:56
that oh so little it means of us a
32:59
[Music]
33:02
little involves gifford pinchot the
33:05
famous progresses as conservationists
33:07
assistant secretary of state hunting
33:08
mean one thing secretary ward newton d
33:11
baker and the wolf administration for
33:13
center james harvey rogers of cornell is
33:15
a very very big in simulation with the
33:17
wrestling team mitchell of the national
33:18
bureau of economic research was big in
33:20
world war one planning Johnny role Vince
33:22
key in the bank of america Jeremiah w
33:24
Jenks and i already mentioned we can
33:26
account of financial civic federation
33:27
Henry a Wallace every moment also John
33:32
see why NASA’s beloved figure perilous
33:35
there’s a simple pages and easy people
33:39
fell great for the public establishment
33:41
which deals with find out okay yeah this
33:44
feels really really really great message
33:46
on to you want a beloved nothing Johnson
33:47
wine ass drop asshole corporate Yeah
33:50
Yeah right so also george eastman kodak
34:03
Rory suburbs and heavily wrong with
34:05
regret the reform in rochester samuel
34:07
gompers naturally john w davis of morgan
34:12
lawyers Bradford Arick Heidi nomination
34:14
for President Lincoln 24 Charles doors
34:17
and vice presidents in public
34:19
administration William green in the
34:21
American Federation of Labor autocon
34:22
investment banker I like you wrote
34:25
james h ran jr jr remington rand
34:28
frederick see Delano who faculty
34:31
roseland uncle much reflects on
34:32
religious refer to ruggles oh no fallen
34:36
Warburg only the young of General
34:38
Electric and the president I want also
34:42
Norman Thomas for the final final line
34:46
llame it’s Emily several people here
34:47
complainant and they don’t know what is
34:49
this von yup anything along Yaffe is an
34:52
Italian word la niña P P especially
35:00
weenie icing on the cake you know if I
35:01
on Cherry online about the birthday cake
35:03
I Ratigan stove in the install of that
35:07
as an injury the final mine yapping is
35:10
whole thing Norman Thomas is also
35:12
involved in this with all the other is
35:13
or was of a spiritual colleagues and I
35:16
mentioned them somewhere and edition
35:19
only sleep and maximize our laws our
35:21
prayer and France and the rothschild a
35:24
rate law child banking family Europe or
35:27
foreign long and the president of water
35:30
following association for the members of
35:32
stable money weed with their own
35:33
Association the American Association
35:34
labor legislation chairman already
35:36
American Bar Association American Farm
35:38
Bureau Federation the Brotherhood of
35:41
railroad Trainmen 33 chairman of the
35:44
chairman of 43 stink Bankers Association
35:46
the National Assembly accredit men’s the
35:50
National Education Association which
35:51
brings in our progressive educationists
35:53
in the picture United Mine Workers
35:54
natural range the Merchants Association
35:58
New York and the Chicago Association
36:00
Commerce or the very big in this
36:02
abstract vendor a liberal national city
36:04
bank and two big theoreticians for this
36:07
to become a portly their Hoover’s big
36:09
theoreticians and wait for me so the
36:11
famous inflationary economic writing
36:13
team of four story catching four star in
36:16
catching the Rope various inflation is
36:18
working twenty favored Public Works the
36:21
cured stabilizer session Spector the
36:24
teen is largely enforcer was Ali
36:26
retention Israel has returned we put our
36:28
oil stuff about that you’re giving you X
36:30
amount of dollars each going second
36:32
Catchings they form a Pollock foundation
36:34
for economic research or equal
36:37
and what L catching is more interesting
36:39
in for service I seriously funny is a
36:42
partner of Goldman Sachs that’s a
36:43
banking company welcome steel iron and
36:46
steel magnate who was are heavily
36:49
involved in functionary theory and it’s
36:51
sort of informants alliance okay the
37:01
system is a statistic here you are a
37:04
total money supplies in june thirtieth
37:06
9021 the june 30 29 28 inflation during
37:08
years increased by approximately sixty
37:12
two percent it was a year period
37:15
including a roar defining of money on
37:17
very broad sense of anything either bank
37:19
deposits or demand deposit or anything
37:23
redeemable at car and bank deposits and
37:28
which is an average annual increases
37:30
something like something less than eight
37:31
percent touring as i say the first half
37:35
of 1929 the bleep white chocolate free
37:37
thing in the whole thing collapse okay
37:40
what i’m going to do now are we going to
37:42
remain ranging expensive nick i press on
37:45
with a monetary picture at least during
37:47
a nearly new deal for again i think i’m
37:49
gonna drop Hoover’s I think you all know
37:50
I have a say about who wasn’t in the
37:52
readings I don’t press on so the certain
37:57
under car here in the Carpenters what
37:58
that just calling for two more weeks
38:00
have two more weeks of conference
38:02
borrowing that and i find that taking
38:05
people cut a bit here and go on to the
38:08
skill nothing 30 okay i have a thing
38:14
here which is written first time I began
38:22
this is a paper I delivered and other
38:25
places not yet published and I begin by
38:30
coming up with 22 the background single
38:33
be funny and then press on in 30
38:45
senior okay thanks Levi I’ll sorry you
38:56
can see what happens the International
38:59
Monetary framework of 1920 collapsing
39:01
the school of the Great Depression a
39:02
rather a collapse of its own inner inner
39:04
contradictions in the depression which
39:06
it had helped to bring about for one of
39:08
the most calamitous features of the
39:10
depression with the international wave
39:11
of banking failures the banks failed
39:13
from the inflation and over expansion
39:14
which were the fruits of the manager
39:17
international gold exchange standard
39:19
once the jerry-built pyramiding of bank
39:21
credit a collapse it brought down the
39:23
banking system of mention affirmation as
39:25
inflation whether they were piling up of
39:26
currency claims abroad the cashing in
39:29
ova claimed what the role filer
39:30
suspicious all of the other banks and so
39:33
let’s say you’re spreading and testify
39:34
the failures and weak currency countries
39:37
whether the accumulation strains and
39:38
other lee currency nations ultimately on
39:40
the bay speed of a shaky pyramid Britain
39:42
or the United States the major banking
39:44
crisis began with a near bankruptcy in
39:46
1929 of the Logan credit installs of
39:49
Vienna the major bank and in Austria
39:52
which would never recover from its
39:53
dismemberment of Versailles desperate
39:55
attempts by JP Morgan the House of
39:56
Rothschild later the new york fed the
39:59
shore up the bank only succeeded in a
40:00
temporary rescue which committed more
40:03
financial resources from unsound bank
40:04
and able I made at ultimate failure and
40:06
may 1931 all the more catastrophic
40:08
rather than committing outright
40:10
liquidation of their banking systems
40:11
Austria followed by Germany other
40:13
European countries went off of those
40:15
standards during 1931 we’re really
40:18
entices as we were placed in 1933
40:19
between has the 1933 we had laureate
40:22
opportunity to wipe out the entire
40:23
banking I mean being white that those of
40:28
us were contrast with such as far as
40:30
their ardent jacksonian types so the
40:32
great vision or what a thing about
40:34
allowing I think it even if I were if
40:36
any common sense what does the
40:40
opportunity let me old by the entire my
40:42
nieces and was toppling sort of going
40:43
over the race found on track for more
40:45
money for easing that any right so place
40:49
with us for this with a choice we will
40:52
evaluate when we go over those standards
40:55
well the key to the international
40:57
monetary situation was great love and
40:59
the base of the world gold exchange
41:01
standard British inflation of cheap
41:03
money in the standard which had made
41:04
Britain the base of the world’s money
41:05
put an almost pressure on the pound
41:07
sterling as foreign holders and sterling
41:09
balances became increasingly panicky and
41:12
cooling British redeem there’s going
41:13
either gold or dollars I’m a friendship
41:15
the French what hamels our precious mr.
41:17
blazing the French minus five we’ve had
41:18
a solid caching is and sterling the
41:26
heavy loans by British banks of Germany
41:28
during the 1920s may the pressure after
41:30
the German monetary collapse for more
41:32
severe but Britain could have saved the
41:34
day by using a classical row center
41:36
medicine such crisis and raising back at
41:38
this rate sharply thereby attracting
41:40
points of Britain smaller countries in
41:42
such a monetary crises furthermore such
41:45
temporary tight money and checks the
41:46
inflation gives foreigners conference
41:48
with a pop town will be sustained in
41:51
Italy they continue the whole sterling
41:54
without calling on the country for
41:55
redemption and earlier crises for
41:57
example present it raises bank raises
41:59
the bank right meaning the bank’s
42:01
magazine ones we discount rate basically
42:02
to the other night it raises back rate
42:05
as high as ten percent early in the
42:06
proceedings and temporarily contractor
42:08
the money supply to put a stringent
42:09
check to inflation but by 1931 deflation
42:13
and hard money become unthinkable in the
42:14
various political climate I’m so
42:16
Britain’s from the financial world by
42:19
keeping it back right very well then
42:20
we’re raising in about four and a half
42:22
percent and if I continuously sterling
42:25
so further to offset goal losses abroad
42:27
as the run on sterling and everybody
42:29
intensifies button pathetically the two
42:31
days 2d ated it’s only gold exchange
42:33
standard the very monetary center that
42:35
is a source of kajol Europe goes up by
42:38
coolly going off of those so december
42:39
9031 playing all tough follows a we ate
42:42
we ain’t playin a game have been
42:44
redeemed and you can golden dollars its
42:47
own international monetary system of
42:49
sacrifice and the over continued
42:51
domestic inflation one veggie man
42:55
Anderson’s book economic with all the
42:58
welfare is a little pony a little story
43:00
it was much the head of the budget
43:02
central bank I forget his name equals up
43:04
early muttering Norman
43:06
they before the Treasury British
43:08
Treasury of Jewish but a day before that
43:10
goes over those things very very secret
43:12
or don’t go off alone spent a couple
43:13
people secretly he calls I’m saying oh
43:15
gosh let’s follow you only a lot of
43:17
money in so far I’m going to great
43:18
friend of yours and please tell me you
43:19
be attending a walk all for those
43:20
another one because we might not pull
43:22
out give me this one little break I said
43:26
don’t worry we’ll never go over those
43:27
are never never we’re clear what your
43:29
old friend you can assure you that the
43:31
next day single of the bunk minutes is
43:35
typical I mean as bad as governments are
43:37
in general they really they’re worse
43:38
than an hour via filming in the
43:40
International Monetary devaluation such
43:42
a front assume they like custom ringing
43:45
the double-dealin grand scale goes on
43:48
for the public interest and the
43:51
Europeans the European system european
43:55
monetary system is thereby broken up as
43:56
a separate and even lowering currency
43:58
bloc’s I want to see one of those things
44:00
we care about me instead of the screamin
44:01
like really fluctuating change were
44:03
inconsistent one of the problem have no
44:05
economic theoretical fatigue illness one
44:08
of the practical political problems in
44:09
saying is the number happen a million
44:11
years and never have a situation in EM
44:13
have situations every governor was given
44:15
told the power with fiat currency over
44:17
his own banks and its own currency and
44:20
then and then he stayed back and
44:22
commitment was their current the years
44:24
the precious currency that fluctuates
44:26
freely let it happen soja happens is it
44:29
starts happening right quickly have
44:31
currency bloc’s exchange controlled
44:33
bilateral deal will and montrose ugly
44:35
animal 30 it sure which we really were
44:41
consequat everybody going off the gold
44:43
standard we have competing evaluations
44:48
we fight you devaluation karthi a little
44:49
bit so get your export your supply your
44:52
exports and the other guy does the other
44:53
thing and they have your changing frozen
44:55
fantastic mess develop your team on
45:00
trace of me they buy broken up into
45:01
separate leaving warring currency bloc’s
45:03
replete with fluctuating exchange rates
45:05
exchange control and trade restrictions
45:07
the major countries have bitten off for
45:09
those family section Belgium home
45:11
rapidly clicking on your site’s currency
45:15
bloc’s firm with with the British Empire
45:16
from a thrilling block with Perry’s
45:19
usually six
45:19
relation of a parent for the world
45:21
they’re floating with their fix
45:22
relations other something like the
45:24
common market doing room that
45:27
particularly ironic one of the earliest
45:28
detective Britten going off goals
45:30
whether the overvalued path which
45:33
Britain and assisted you known as and
45:34
put everybody else or the Rainier
45:36
distance to keep the 486 now in the
45:38
elephants and now the crown suite of
45:40
fluctuating found shot right down with
45:42
genuine economic value how can we see
45:44
all of the 47 from the past after all is
45:46
this headache they imposes the world
45:48
they allow the pound of the float goes
45:51
right down and some Britons brandix firm
45:54
on a returning to a film of gold and an
45:56
over valuable par head had ended in
45:58
disaster for herself across with us in
46:00
the world in the last week’s of the
46:02
Hoover administration that’s for attempt
46:04
was made by a nice place restore
46:05
international monetary system this time
46:08
the offer was made to Britain to the
46:09
turn of the gold standard of the current
46:10
eminently more accessible par mean sir
46:13
creating 350 in 40 and exchange the
46:19
substantial reduction of the British war
46:20
dec the little ability forth by
46:23
overvaluation of being a chronic day of
46:24
depression that was export industry see
46:26
by this time if I should realize it is
46:28
something wrong back there it’s better
46:30
to have the British Pound low simulate
46:33
their export the market law education
46:37
who struggle learning to struggle a
46:45
little britain be forced by or
46:47
evaluation mean a chronic state of
46:48
depression of his export industry the
46:50
bridge now has a national identity and
46:52
then assist when I outright reflation
46:54
prices back to the pre depression i
46:56
complaining on lovely get back to nollie
46:58
have this reflation but it had become
47:01
increasingly clear the path of high
47:02
stable relationships afficher coming
47:04
over group we’re interested not so much
47:07
a simulation as a high price and now
47:09
that they would only be satisfied with
47:10
an inflationary returned it was pointing
47:12
from all levels britain’s rejection of
47:15
the american or approved to be stable
47:16
for an equal to international monetary
47:18
stability the world monetary safe
47:21
finally rest of the United States major
47:23
goal country fan recovery school
47:24
remaining Federal Reserve attempt to
47:26
incite the money supply the lower
47:28
interest rate during the Depression so
47:30
that we can confidently dollar
47:32
go last post the Bible runs and failures
47:34
of the banks that increasing pressure on
47:35
American Maggie sue if we were quite
47:37
definitely going to fight those
47:38
promoters book monetary haces denounces
47:42
Hoover for lowering a money supply and
47:45
from a container on a 33 there by
47:47
precipitating depression or natural
47:49
exuberance and that think people might
47:51
supply to try everything possible buying
47:53
a thorough service by security like
47:54
matter of putting on interest rates the
47:56
problem arises the depression sent
47:59
across America’s weekend of a public was
48:01
cashing in their money we’re cashing in
48:03
their bank accounts for getting hard
48:04
action even gold and gold redemptions
48:07
with me in the management broad and
48:09
substances was this over way that that’s
48:11
what I’d like a little insight finally
48:17
during the interregnum between hoover
48:18
and roosevelt ministrations the nation’s
48:20
bank began to collapse and ernest the
48:22
general Bank collapse remember the
48:23
banking system always on sound and they
48:25
capable of paying more than faction
48:27
within my abilities and land the only go
48:29
on either of two opposite direction so
48:30
I’m throwing a mapping this big
48:33
opportunity person a truly lazy a fair
48:35
policy would have allowed the family
48:37
back to collect and everybody agent
48:39
Swift sharp digital operation whatever
48:43
she would have transformed the nation’s
48:45
monetary systems are unfounded play
48:47
sherry won the truly artist able con see
48:49
the other polls or government of the
48:51
fair massive bank holidays ie to relieve
48:54
the banks of the obligation of pay off
48:56
some debts which they heads enforcement
48:57
every treaty the pressure makes sense to
48:59
me seems every previous financial crisis
49:01
we can 49 and then move on to the
49:04
repudiation of old sign oh no sorry
49:06
typing up and be played by inflated
49:08
triad paper issued by the government
49:09
there’s important to realize that
49:11
leaders of Hoover in order of suppose no
49:13
administration and I think intention of
49:15
taking the first week so I really sharp
49:17
special operations like the hard money
49:19
you think while I was a considerable
49:21
extent to have a fan of those standards
49:23
no one endorse a rigorously they fear
49:25
room one thing is that even though
49:27
Hoover of course is gonna favorite
49:28
keeping out of those services the
49:30
Secretary of Treasury ugly nose in an
49:32
undersecretary on for valentine by the
49:34
time March 33 came around they were in
49:36
favor going on for those panels
49:37
anticipating losses on policy the new
49:40
local administration is now faced with a
49:42
choice of retaining are going off of
49:43
those centers well
49:45
must everything support of the temporary
49:46
bank holidays even Anderson will up
49:49
these peoples around an epic fail banks
49:51
fight of an upper window chase bank
49:55
connections I almost everyone support of
49:58
temporary bank holidays it was a severe
50:00
split on a longer one question of the
50:01
monetary standard while above relations
50:04
academic economist was closely behind
50:06
the gold standard hard to imagine what
50:08
they did I think 5,000 of commerce of
50:10
1200 something with a big letter a big
50:12
public statement and or think you’re
50:15
looking in the gold standard the
50:16
indefatigable irving fisher redouble
50:18
with agitation or inflation spread on
50:20
revised personal diary in psych stock
50:22
prices since the stable money especially
50:25
since the same of money association but
50:27
supposedly dedicated pi stable
50:29
relationship fisher room and what’s
50:31
Fisher in the inflation is wanted now is
50:33
advancing raising the prices the
50:34
Association look latest a face a
50:36
pleasant change his name disappears got
50:39
a new journey and there were the first
50:41
of stable money Association which we
50:42
thank you know whether my point that
50:44
they was in front of now they got their
50:45
name they simply actually confirm a new
50:48
name for the committee for the nation
50:50
rebuild prices and purchasing power this
50:52
is where shortened by everybody’s rooms
50:54
over to the committee formation the
50:56
agency group the completely English
50:58
committee to the nation founded in
51:00
January 1933 subscribe for quote
51:02
reflation unquoted slices back 2 & 3 19
51:05
20 levels stabilization of price levels
51:08
of the sea only after that that point
51:10
had been achieved committee for the
51:12
nation which was the crucial influential
51:14
and raise our precision was imposed
51:16
hardly a prominent businessman or where
51:18
he has Fisher and a yard of tearful is
51:20
abundantly as a sort of stable as a mass
51:23
basis probably and is very prominent
51:25
businessman involved in it the committee
51:27
was originated by Vincent Bendix
51:29
president of ethics aviation when
51:31
General Robert E wood here to head of
51:33
sere oh bugger company they were soon
51:35
joined on the full of 1932 like Frank
51:37
Vanderlip loan closes Fisher especially
51:39
president national city bank of new york
51:41
I james h ran June doing here Remington
51:43
Lana by Magnus elexander head of the
51:45
National trio conference port other
51:47
members of the committee correlation who
51:49
is Fred age sex our president of eram
51:52
only cooperate association secretary
51:55
gates Fraser chairman immoral general
51:56
baking company
51:58
Magna yeah al cord cord cord car let’s
52:02
say Jay Rosen wall chairman sears
52:04
roebuck Samuel FL the Sullivan company
52:06
was also big corporate level so maps
52:09
like a sucker so okay Wrigley president
52:12
when you’re Wrigley company and really
52:13
join them John Henry Hammond chairman of
52:15
the water penguin our stock railroad
52:17
Edward A O’Neill head of the American
52:19
Farm Bureau Federation LJ paper ahead of
52:22
the National range that far are we lost
52:24
their life buzzing Rudolph Royals their
52:26
manufacturing company William J Makka
52:28
vini president custom motor company
52:30
that’s the old possum connection the
52:31
moment nothing’s really wrong clean up
52:34
around Frank again that again at
52:36
newspapers and in the end of banker
52:38
where you may work it is something is up
52:42
yeah oh yeah ok let’s try gonna come to
52:48
the lid here right if you say enough the
52:52
same group of highly conservative
52:53
industrial isolators have become the
52:55
committee for constitutional governments
52:56
a major anti New Deal propaganda group
52:59
the late thirties and forties when I was
53:01
growing up with a movement fit estate
53:03
classes if I’m a lead big mass right
53:06
wing right I anti media organizations
53:08
and I’m many rapini leaf looks so cool
53:11
opinion moves across the country as
53:14
interesting as the only time they’re
53:15
ever intellectual was a long time they
53:17
were in favor of government they were
53:18
Rubio’s who they are definitely was
53:20
listening existence guess yet this
53:24
committee was a major proponent of the
53:26
inflation is caused the early movie land
53:28
lease waiting and bam burung the gold
53:29
standard also a ship associated
53:32
committee for the nation with another
53:33
leading influence of track original
53:34
precision agricultural economics project
53:37
war on a cornell along with colleague
53:39
Frank aid Pearson the inspiration for
53:42
relations Roosevelt program particularly
53:43
amazing the buying price of gold very
53:46
funny thing happens and 1950 blanking
53:50
could be for recession I think it was
53:51
the committee is the gold rope the
53:55
committee for the nation committee
53:56
information ever comes up observed today
53:57
Frances government but their hearts
53:59
still lay in raising the prices rose ave
54:01
a bound Zeke I know all the free market
54:04
rhetoric aromatica Leon latest hardcore
54:07
Beijing prices over the imported college
54:10
park
54:10
I speak to the matter how to solve I
54:12
think it’d be performing session and I
54:15
having to be the center of my five he
54:17
went for low my first dinner functions
54:19
in movement and little any of the
54:23
conservative widely margins my
54:25
conservative movement and a college
54:28
soccer that comes our comp are
54:29
definitely people are comp our greatest
54:31
English English economist extremely
54:33
conservative canonical a pro populations
54:37
which might be connected with a very
54:39
conservative capitals use and it also
54:42
very Keynesian he has a clear let’s
54:44
Piedmont everything they’re very
54:45
painting or if he gives a speech 154
54:48
recession and the first has a rest are
54:50
weird speak to print is very
54:51
distinguished report culture is Oxford
54:53
type who will leave English murmuring is
54:55
a soul he is the first type of speech is
54:59
that he is only these people are it
55:01
gives it first happens communication
55:02
type group first time this week i canna
55:04
state the state as evil as late as news
55:06
parasite Lola safe stop I’ve been saying
55:09
here and the last half of the things
55:11
completely shifts around a core 450
55:13
billion dollars that has been
55:14
immediately he says the only way to cure
55:18
is only one way to cure the special
55:19
buddy this whole American recession the
55:21
only cure is immediate meso fantastic
55:22
episode to list Lillian phone yet so
55:26
that’s because these extreme right-wing
55:27
change alright so so that comes a
55:31
question for your comments every one of
55:33
these guys sitting around the table
55:33
blues banker types these old guys are
55:37
listening that’s the coloma lombard and
55:40
other characters from the UI system and
55:42
Ambrose bunker and other guys and each
55:45
one looks like giving a big replay
55:46
angles pretty cold like a clerk father
55:50
ever this stuff you know it’s not parley
55:52
actually economic mainstream and as I
55:56
this shit only try the shaking his
55:58
finger at Clark places I you say the
56:00
price of gold is possible I don’t see
56:02
how the price is really really important
56:04
I got you shaking its finger in a car
56:06
say back supposing we raised a principal
56:07
was twenty thousand dollars announced
56:09
when I would expect from the committee
56:17
the committee for the nation the first
56:21
included through several hundred
56:23
industrial agricultural leaders and
56:25
we’re going to hear its membership reach
56:26
over 2,000 its recommendation beginning
56:29
was going on oil embargo and goal
56:30
exports and continuing to devaluing the
56:33
dollar raising the types of gold will
56:34
fairly closely follows on Rosalyn
56:36
ministration for his par everything
56:41
Fisher and response to a request for
56:42
advice I present are like roses awesome
56:44
I thing for sure from right the run
56:47
things anyway I strongly urge at the end
56:49
of februari frankly inflation is policy
56:51
reflation devaluation leaving those
56:53
banner without the life getting away by
57:01
april nineteen ninety 33 Roosevelt has
57:03
to die for those policy Fisher resulted
57:06
in the mother’s letters hope now I am
57:08
sure and Farley ever can be sure
57:10
anything that we going to snap out of
57:12
this depression fast yes very specific
57:15
I’m now one of the happiest of the world
57:17
the same letter to his wife an heiress
57:21
of the potential hazard family’s fortune
57:22
Fisher added quotes my next big job with
57:25
the raise money for ourselves probably
57:27
will have to go to sister again as this
57:29
is why such a terrible we mostly leave
57:33
millions before the famous the last few
57:37
weeks provided i think was fair to ask
57:38
if there for money and there’s a real
57:40
chance i could ever pay it back I mean
57:42
that’s FDR had followed blast that car
57:44
glass of Virginia was me implement each
57:46
for control of the more money man if FDR
57:50
I saw glassy we would have been pretty
57:51
surely ruined as we meeting he is an
57:54
officer so an allied chemical which much
57:57
of a family’s fortunes investments right
57:59
families which existed and you
58:01
experiment no I can now I can go to
58:03
Cicero to clean punches I don’t know who
58:05
I chemical leg up here the more the
58:06
Rockefeller thing I wrapped open
58:08
increases in a question period liebelei
58:12
noses of that if rimming Fisher’s
58:15
interest as personal as well as
58:16
political as well as audiological
58:17
economic interests also underway the
58:19
concerns committee formation the form
58:22
groups one at farm prices going up in
58:24
clinic for mix
58:25
would necessarily increase in terms of
58:27
other currencies forever currencies
58:29
devalue as for the rest of the committee
58:31
and other the other inflation is further
58:33
to spice notes I’m not a fan of Herbert
58:35
advice of the table you quote Union has
58:38
a quote scriptures and Evelyn remember
58:40
every spice notes quotes by the spring
58:44
of nineteen thirty three diverse
58:46
organizations and groups were crying a
58:48
lot for some kind of monetary inflation
58:49
of the evaluation or both most effective
58:52
probably was when the committee
58:53
accumulation among its members were
58:55
prominent merchant such as a head of
58:56
sears roebuck some journalists some
58:58
won’t be operators and some foreign
59:00
exchange speculators they have purposes
59:02
to get the United States also gold
59:03
sentence or bring about the evaluation
59:05
of the dollar from which they were
59:06
talking either of speculators and
59:07
foreign exchange for a business another
59:10
group more conservative is put the game
59:12
by the evaluation but those were who had
59:15
already exported gold or otherwise
59:16
acquire liquidly positives and foreign
59:18
banks they can see that they were really
59:20
protecting the value of their capital
59:21
then there were the export is especially
59:23
a farm product to a minute of this
59:25
advantage ever says great business going
59:26
off of those standards and value killing
59:28
it so much below its previous parody
59:30
resolve really guys they are not busy
59:32
value we got these valuable mash Britain
59:34
spur our expression also advocating and
59:38
endorsing the decision is so impolite
59:40
and leave of those fingers but such
59:42
conservative bankers a dainty warm
59:44
Burger King relevant company one of
59:46
those walls leading monitoring Reiser’s
59:48
former vice president in Chicago banker
59:49
Tollison dog Logan a trailer president
59:52
of the First National Bank of Chicago
59:54
Frank old Charlie international banging
59:57
Hampton laws our prayer and let’s go see
59:59
Leffingwell partner JPMorgan company
60:01
nothing while Roosevelt that is action
60:04
quote was widely necessary and what’s
60:06
important all the hustle things you was
60:07
done unquote we’re going to directly
60:11
there we’re going to stop sale goes off
60:14
especially the gold center no don’t have
60:16
a contractual usual sort of beauteous
60:18
things conservative bankers always very
60:20
little sense the Morgan like what
60:22
welcome Morgan nice to know that Kylie
60:27
Morgan’s issues with say the new york
60:28
times especially I welcome the reported
60:31
action of the president of the secretary
60:32
of the Treasury and placing embargo and
60:34
gold exports it has become evident as
60:36
the effort to maintain the exchange
60:38
value of the dollar
60:39
emails against depreciated foreign
60:41
currencies as having a deflationary
60:43
effect apartment already severely
60:44
displayed at American prices and wages
60:46
and employment it seems to me clear the
60:49
way out of the depression to combat it
60:50
over kind of these cautionary forces
60:52
therefore our regard the action now
60:54
taking a thing about possible course on
60:56
a circumstance you can work other
60:58
prominent advocates is going off with
61:00
old standards or publishers day David’s
61:02
territory a mandala first announced here
61:04
James HR HR Cornwall the rate so low and
61:07
criminal backing Ernst & Young being
61:10
lost on another Harvard Business School
61:11
that have won a big idea of a corporate
61:13
corporate dividing the morning so I turn
61:16
at the 1931-32 in full player comes a
61:19
song tom says well you know some really
61:23
good things about the Soviet Union zone
61:24
but really coming heart of this is
61:27
horrible they have a five-year plan a
61:30
plan in the street we should follow this
61:32
conservative Republican senators such as
61:34
David a read of Pennsylvania Minority
61:36
Leader charlo magneri of Oregon also
61:39
approval decision coming off of
61:40
Vandenberg Republican of Michigan
61:42
happily declare that Americans can now
61:44
compete an export trade hope for the
61:45
first time in many many months
61:48
Vandenberg concluded that abandoned old
61:50
abandoned of the dollar externally may
61:52
prove to be complete answer to all
61:53
problems before the protein factors
61:55
concerns it was badly written quotation
61:58
competitive person this is cause of
62:01
approval for leading five years and
62:03
industrial estate school determine
62:04
opposition to going off gold aside from
62:07
the book of the nation’s economist the
62:08
lead in opposition was again taken by to
62:10
economics at post piles of the banking
62:12
community who had the major opponents of
62:14
a strong Morgan policy during I think
62:15
twentieth Benjamin I’m Anderson the
62:18
Rockefeller Ian and chase National Bank
62:19
about 4-h Parker Road editor of the
62:21
journal of commerce and chief advisor to
62:23
Senator quarter glass the wholly
62:25
separate treasure in a look the Chamber
62:28
of Commerce the United States also
62:29
vigorously attack the amendment of those
62:30
as well as price level stabilization and
62:33
Chamber of Commerce and york state also
62:34
call the top return the gold from the
62:37
financial community leading opponent of
62:40
Roosevelt’s decision what’s up w old
62:42
rich Rockefeller kinsmen head of the
62:44
safe national bank and Roosevelt budget
62:46
director Lewis w SS in the Arizona money
62:48
family with later the day Henry
62:50
Schroeder international bankers and less
62:52
come had a mutual life insurance company
62:54
in bachelors anal Douglas fought
62:56
valiantly but in vain when the
62:57
administration gets going off gold and
62:59
got the remainder of the media program
63:04
later leaves the administration right
63:06
the butchering of the packing moving
63:08
from liberal position by the end of
63:10
april nineteen thirty three the united
63:12
states is clearly off the gold standard
63:13
all are quickly began is appreciate
63:15
relatives a goal and replanting
63:17
currencies britain which a few weeks
63:20
earlier a lustful you rejected the army
63:22
of international stabilization is
63:23
alberta na become site number will be
63:24
valuing them like their exports of being
63:27
hurt in someone else’s currency bloc’s
63:31
is depreciating kinda late british
63:33
exports in one place depreciation of
63:35
dollars for American export and is your
63:37
British exports is quite another the
63:40
British had a consumption is rebuilding
63:41
our sites are going off gold I really
63:43
cute in here is here they go up or we go
63:44
local two years later led zep I think
63:47
now rest of that final hope for restore
63:50
international monitoring system on the
63:51
world economic conference schedules
63:53
remember when June I think straight well
63:59
I think he has a good local stops over
64:03
teaser for tomorrow night

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Murray N. Rothbard Quotes

What do intellectuals and opinion makers get from big government? An increasing number of cushy jobs in the bureaucracy, or in the government-subsidized sector, staffing the welfare regulatory state, and apologizing for its policies, as well as propagandizing for them among the public. To put it bluntly, intellectuals, theorists, pundits, media elites, etc. get to live a life which they could not attain on the free market, but which they can gain at taxpayer expense.Murray Rothbardhttp://www.readrothbard.com/quotes… (next quote)